In an announcement on Sunday, Huawei revealed plans to transfer key technologies and resources from its smart car unit, which has seen strong sales of several new vehicles, to a new joint company, with automaker Changan Auto holding up to 40% ownership. According to a press release from Huawei, the new joint venture will focus on research, development, production, sales, and service of intelligent automotive systems and component solutions.
The press release stated, “The new company will work with partners to promote innovation and leadership in smart car technology and promote the prosperity and development of the automotive industry.” Chongqing Changan Automobile also confirmed the creation of the new company in a filing with the Shenzhen Stock Exchange, disclosing that the equity ratio and capital contribution will be negotiated by the two parties. According to the filing, “The two parties will jointly support the target company to become an industry leader in automotive intelligent systems and component solutions based in China.”
At a signing ceremony in Shenzhen, Huawei’s managing director and chairman of the smart car solutions unit, Yu Chengdong, emphasized the company’s commitment to collaborating with more auto firms to take advantage of opportunities in the electrification and intelligent transformation of the auto industry. Huawei has reiterated that it does not manufacture its own cars but rather assists other automakers in producing superior vehicles. The tech giant already has partnerships with companies such as Changan and Seres Group, with whom it co-produces Aito branded cars, including the popular M7 model.
Additionally, Huawei has teamed up with Chinese automaker Chery to develop the S7 sedan under a new brand called Luxeed, positioning it as a competitor to Tesla’s Model S. In October, Huawei announced that it had garnered over 50,000 orders for its redesigned M7 model within the first 25 days of sales, potentially placing Aito among China’s top five new energy vehicle manufacturers based on August data.
(Reporting by Laurie Chen and Beijing Newsroom; Additional reporting by Brenda Goh in Shanghai; Editing by Edmund Klamann)
